PSI negotiations continue as troika arrives

Tough negotiations regarding Greece’s ongoing debt crisis were set to continue on two fronts in Athens on Friday. Talks regarding the private sector involvement plan (PSI+) were expected to carry on from Thursday, while troika officials were in Athens for a fresh round of discussions on the subject of new reforms.

Talks on the PSI+ were expected to continue Friday following a late meeting on Thursday between Greek Prime Minister Lucas Papademos, Greek Finance Minister Evangelos Venizelos and the head of the Institute of International Finance (IFF) Charles Dallara. On Friday, Skai television reported that the haircut is expected to reach 65 percent.

Meanwhile the issue of the 13th and 14th salaries in the private sector was expected to rank high on the agenda of talks between Greek government officials and high-ranking troika officials ?- the European Commission, European Central Bank and International Monetary Fund — in view of a second bailout for Greece.

Following a joint meeting with the leaders of the three parties of the interim coalition on Thursday, Prime Minister Papademos declared that they were all behind the government?s task of pushing through tough reforms, though sources did note that hesitation was voiced on issues such as holiday pay.

Speaking on German television on Thursday, the head of the European Commission?s special task force for Greece Horst Reichenbach noted that economic reforms are coming along slowly in the country. Reichenbach conceded that Greeks have made many sacrifices but need to be patient. He also stressed that the country?s political class needed to negotiate, perform and convince creditors, while he also urged the international community to be patient regarding Greece’s reforms.

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